Ratchford Clocks Manufactures Alarm Clocks and Wall Clocks and Allocates

Essay

Ratchford Clocks manufactures alarm clocks and wall clocks and allocates overhead based on direct labor hours.The production process is set up in three departments: Assembly,Finishing,and Calibrating.The following is information regarding the direct labor used to produce one unit of the two clocks:
The budget includes the following factory overhead by department:
Ratchford Clocks is planning to manufacture 50,000 alarm clocks and 10,000 wall clocks.